(Chart 1, Building Activity Increasing <50)
Despite the slowing economy as reported in the general media, Michigan regional contractors and construction managers experienced a 2.8% growth in bid requests this year. Awards in the near term are accelerating as contracts for new construction and renovations also increased by 4.8% between February and April 2012, over 2 times the amount experienced in the same period last year.
(Chart 2 Expected Growth)
Input costs for materials are moderating while labor costs continue to be a challenge. The workforce remains steady to declining and expectations suggest labor costs are moderate with materials. Overall, the industry remains optimistic that it will experience continued growth which is great news for everyone in this region.